IRS Standard Mileage Rate

The IRS standard mileage rate is a per-mile rate used by self-employed individuals to calculate deductible vehicle expenses. Many employers also use the rate to reimburse employees because it's simpler than determining region-specific rates as with FAVR reimbursement.

The rate is based on a national average of both the fixed and variable costs of owning and operating a vehicle for work, determined via an annual analysis of those costs. However, because it is a national average, businesses should keep in mind that using the rate may result in some employees being over- or under-reimbursed depending on a given region's costs.

The IRS updates the rate annually, though midyear adjustments can occur. As of July 1, 2026, the rate is 76 cents per mile.